WSJ's Charles Forelle joins the News Hub to discuss the dour mood in Europe as major indexes plunge. Italy and Spain reveal a slight silver lining with a relief rebound. (Photo: Associated Press)

This transcript has been automatically generated and may not be 100% accurate.

... three to one hundred or ... more ... you know ... the nation to their down time when you when you write about ... that would be Italy and Spain which have been pummeled so badly over the past we ... have been added to the early ... read them this morning ... the Education down ... from traders in the market the European Central Bank is ... fine ... aam small if the government on the top of undergoing Spain ... to think of part of it here in Europe but they still enormous and her ... network ... yet ... the U S outlook as a key factor is all that were just about half an hour away from U S jobs are ... expected to react overseas ... obviously people here didn't you ... a new store notebook attention we started the week to week and a half ago ... between when a scientist of ... the troubled global economy ... on you seriously at Europe if it ... helped prop the plight of the tying government debt ... I worried about global growth ideas ... that were in the outing group which he didn't worry that the ability of the Italian sovereign debt ... I read it yet so will the ... disconnect in and a lot of life here on ... on the US is a small ... child my mansion question ... to what extent in Europe if you read the press are you get a Mullett of the people is that such a thing in euro ... you get the via ... the impression ... that this is the final reckoning ... a recognition that the entitlement welfare state ... which is basically what most European countries that don't affect all European countries ... that this is a reckoning ... for the form of the economy that they have ... bought themselves into with the European Union ... already I won quite get in that market can certainly country like Germany and Finland I'm which you're running welfare state there are doing relatively well ... on this this issue were a bit abilities of some countries in Europe a key to leave the country in the Apogee to Italy and Spain ... I begin writing that the society that they've been running ... so it does to an end to war in the northern countries of course the dawn of having to pay for the problems in half ... and I think it'll last a week or so there's been ... no immediate concern with Italy rising to the fore ... the problem is that we have an order of magnitude that ... it hadn't been contemplated even a couple of months ... and housekeeper to talk about is happening in currencies were seeing it after the Swiss National Bank intervened that currency are back at levels before they did so what effect does that happen what effect is the euro broadly speaking ... doing seal of the eurozone economy ... well we ... didn't do this with ... them and so he was really interesting they're ... so cute backing of unthinkable deep even money flooding into the Swiss franc ... I the Swiss National Bank turned around and did I mention to intervene in hand and Coalbed them ... most of that and come back on and obviously you know that this continued concern about what you're going to be a pain in Europe where investors on the move ... in a lot of moving into German born the euro as their relatively well considering the enormous half that amount still above one forty that helps ... that is all ... every time ... the reins to the bottom ... Stingrays to move on let's talk about Italy ... the Italians would appreciate I think they understand exactly was going on here you can ... check ... what to what extent is Berlusconi can be very proactive in terms of ... you not grasping the Nettle and saying you know what we have to liberalize in restructuring the Italian economy ... or to what extent does the economy to play for time and try to keep the ball caught him in the Court of the rest of Europe ... what you did you'd have to watch and is down when he was stronger when he had it has commanded ... I'm more political weight in Italy then it doesn't have the enchanted to do a lot of the things that make a lot of the reforms ... of the war dying Italy is now under the gun he's going to try to push for it ... um but it appears to be debut that year we can only a couple of days ago ... on Commander economic address to Parliament that can really say anything ... I'm he he responded yesterday with having a meeting with business leaders and unions ... I'm still getting very small steps towards reform ... I'm the likely not the sort of fun to drive that may be necessary to stem the beach coronary swings are seeing a market that runs from Brussels ... this morning and child ... protection for the job support ... oh I absolutely did ... well ... the reaction to thank you very much appreciate this morning ... but he's very